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You can also use trade to make some bucks, via automated routes or via the wandering merchant ships (you can sell them your surplus for exemple)
Libraries are ultimately more powerful happiness generators (they're smaller/'more space efficient' and can hit higher maximum as they collect knowledge), it makes sense that they cost more to upkeep as a result.
Going back to the OP: tax is the main way to maintain your income; but don't neglect trade -- if you can produce some surplus goods (I find that charcoal is usually pretty easy, and has a good value compared to the alternatives like food) and sell them, you can build up your treasury quickly; and then re-invest that money into more services (libraries, gardens, even just buying some fish/pork now and then to keep diets varied!) which will in turn allow you to raise taxes sustainably.
In a successful endgame kingdom my taxes usually hover around 40% -- the sheer quality of life means that I can easily support that and keep house happiness above 80% so that even if there is some big negative event, I'll have plenty of time to counteract it (either with festivals and feasts, or lowering taxes if I need to.) So that's a 'base' happiness of around 120% before things like festivals or combat-related buffs/debuffs -- it's quite achievable if you take advantage of stacking bonuses, but to pull it off you need to get into the 'spend money to make money' mindset early on.
So just to point out I am quite familiar with happiness/desirability, whatever the game wants to call it. In FF I been able to hit 100% on homes. That being said creating upkeep simply based on happiness potential makes little sense if you look at other games with a similar mechanic upkeep has realistic meaning. Doctors should cost more then librarians. Its a simple matter of logical balance.
Doctors in this game are a component of the Health statistic, which is also affected by deathcare and food. Health itself is a component of hapiness, meaning that doctor don't affect directly hapiness unlike libraries, and that's the hapiness that runs and allow the expansion of your kingdom.